Talking Points
- GBPUSD Opens in a Range
- Range Resistance Sits at 1.6121
- Range Reversals Triggered Under 1.6002
EURUSD30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
Suggested Reading: Trading Intraday Market Reversals
Tuesday trading has been quiet for the GBPUSD, with the pair trading in a 79 pip trading range. As of the U.S. open the GBPUSD has traversed the range three times, and price is presently residing at range resistance. R3 resistance is depicted above at a price of 1.6121. In the event that resistance holds, reversal traders will look for price to move back towards support now found at 1.6042.
There is always a possibility of a reversal range concluding with a price breakout. If the GBPUSD moves above R4 resistance at 1.6161, this would signal a shift in bullish momentum for the pair. Conversely, a break below the S4 pivot at 1.60002 would create a reversal scenario where price would break back in the direction of the daily trend. At either of these two points, traders should consider concluding any range bound positioning and trade with the markets new found momentum.
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Yesterdays Update
Monday’s reversal article focused on the EURUSD opening the morning near its R3 resistance pivot. After a brief retracement, price for the pair quickly began breaking out to higher highs advancing as much as 65 pips above the R4 resistance pivot. To learn more about Friday’s action, check out the FX Reversal article linked below.
FX Reversals: EURUSD Monday Reversal Range
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---Written by Walker England, Trading Instructor
To contact Walker, email instructor@dailyfx.com. Follow me on Twitter @WEnglandFX.
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